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Cologne, June 2024 – Society's awareness of sustainability is constantly increasing. No wonder that many companies present themselves as sustainable and advertise their products as "green". Occasionally, things are portrayed more positively than they actually are. So-called "greenwashing" harbours a number of consequences and legal implications and stands in the way of the European Union's goals of promoting sustainable growth in Europe.
"Green", "climate-neutral" or "natural" - such terms are being used more and more frequently in relation to products or services, as consumers are placing increasing value on environmental friendliness or climate-friendly consumption. Companies are recognising this trend and using "green claims", i.e. sustainable advertising claims for their products, services or their entire company. It becomes difficult when these claims are not verifiable and companies gain a competitive advantage without actually acting more sustainably.
Greenwashing can have serious consequences and legal repercussions. In many cases, there is a deliberate deception of consumers and the creation of misconceptions based on false information or misleading representations. The consequence on the consumer side alone can be a loss of trust or credibility as well as damage to reputation and image. Depending on the severity of the incident, legal consequences may include the company being obliged to refrain from making the statement in question or being fined or even imprisoned.
The European Union already has a number of regulations aimed at sustainable consumption, sustainable production and greater transparency, such as the Corporate Sustainability Reporting Directive, the EU Taxonomy and the Directive on Empowering Consumers for the Green Transition. The Green Claims Directive, for example, which is specifically aimed at preventing greenwashing, has not yet come into force.
With all the requirements placed on companies and the various pieces of legislation, it is sometimes difficult to keep track of everything. That's why Dr Christoph Schork, lawyer and partner at HEUKING, and Anna-Lena Mayer, Head of Sustainability & ESG at IR.on, held a webinar on 6 June 2024 on the topic of "Greenwashing". The two explained how to recognise greenwashing, what legal consequences companies face and how to avoid greenwashing yourself.
You can request our webinar presentation "Greenwashing: Current developments" and a recording of the webinar free of charge by e-mail (German only).
Do not hesitate to contact us if you have any questions about the Corporate Sustainability Reporting Directive or the EU taxonomy and need support in preparing for the new reporting obligation, checking for taxonomy capability and taxonomy conformity, setting up the necessary data collection in your company and/or subsequent reporting. We will be happy to support you.
